Luxury assets are worth tens of millions

What is reported to be David Stern's 130-foot yacht, Misunderstood,… (Diane Lade, Sun Sentinel )

February 21, 2011|By Peter Franceschina, Staff Writers

In yet another sign that times are tougher for Plantation foreclosure attorney David Stern, he is looking to unload luxury assets worth tens of millions, including two estate properties on Hillsboro Beach that stretch from the Intracoastal to the blue waters of the Atlantic and what is believed to be his Italian-built superyacht.

Stern, 50, made a fortune by building Florida's largest foreclosure legal practice, with an army of attorneys and more than 1,000 employees processing paperwork for repossessions throughout the state.

He received a $58.5-million payout last January when he took his paperwork operation public and the new company, DJSP Enterprises, began trading on the Nasdaq stock exchange. He collected expensive properties, Ferraris and other luxury cars, and two jets.

But his law firm and DJSP have been battered in recent months by reports that his firm relied on fraudulent documents generated by the paperwork processors, and the firm is one of seven currently under investigation by the Florida Attorney General's Office for alleged document irregularities.

Major banks stopped doing business with him, lawyers quit his firm and DJSP laid off its workers by the hundreds. The company had only approximately 50 employees remaining as of last notice.

What is reported to be Stern's 130-foot yacht, Misunderstood, is listed for sale for $18 million at The Yacht & Brokerage Show on Miami Beach. The side-by-side properties on Hillsboro Beach are listed for a total of nearly $20 million. And a vacation chalet outside the ski-resort town of Vail, Colo., has been for sale for $6.9 million since last year.

Miami attorney Jeffrey Tew, who represents Stern, said he had no knowledge about the assets being listed for sale. "I can't comment on it," Tew said Friday. "It's private business, not a legal matter."

Even if Stern sells those assets, he still will own a $15-million, 16,000-square-foot mansion on the Intracoastal in Fort Lauderdale and a 9,000-square-foot penthouse condominium valued at $5.9 million atop the Ritz Carlton on Fort Lauderdale Beach.

The Mangusta yacht, which used to be berthed at Stern's Intracoastal mansion in Fort Lauderdale, was built in 2009. An online listing reads: "Immaculately maintained by a careful owner, this superyacht accommodates eight guests in four cabins and cruises at 32 knots, powered by twin 4610hp MTU engines. Available to view at the Miami Yacht Show, Misunderstood is asking $18 million."

The Misunderstood is the centerpiece of the opulent sales pavilion at the yacht show for Overmarine, the Italian company that produces the Mangusta line, even though her sale is being handled by brokerage company Camper & Nicholsons International in Fort Lauderdale, which has its own space at the show. Overmarine has placed white, modern sofas on the dock immediately behind Misunderstood, and requires guests to check their bags and take off their shoes before boarding for a tour.

Inside, the boat features four staterooms paneled in finely grained wood, each with its own marble trimmed bathroom. There is an exercise room, with two treadmills, and a separate marble-topped bar on the rear deck. Two large compartments in the stern, flanked by twin staircases that descended to the rear platform, house cinnamon-colored personal watercraft.

One of the Hillsboro Beach properties is vacant land, but it is listed for more than the neighboring property with an oceanfront home because the empty lot is significantly larger. The land is listed for $9.9 million,about $1 million more than Stern paid for it in September 2008, records show.

Its listing online reads, "The trophy of all South Florida! Deep lot on Hillsboro Mile, the most amazing ocean-to-intracoastal estate property. No wake zone at the mouth of Hillsboro Inlet, a yachtsman's dream. Build your dream estate!"

The two-story home next door meaasures 5,300 square feet and has four bedrooms and four bathrooms. The listing says the owner will consider offers between $8.9 million and $10.5 million. Stern paid $8 million for the home two days after buying the neighboring property, records show. Taxes on both properties run more than $120,000 a year apiece, and they were both listed for sale in late November.

The listing calls the home, "One of the Largest & Most Amazing Ocean to Intracoastal Estates in All of South Florida! Hampton-like oceanfront home with 100 ft. on the beach and buildable guest house on the Intracoastal. Spectacular private tennis court, resort-style pool, patio with pavilion. Private dockage for large yacht on ICW NO-WAKE Zone."

The home outside Vail is owned by Stern's wife, Jeanine, and the listing price was dropped by $1 million in September. It is 8,300 square feet and has six bedrooms and seven bathrooms. The master bath has a stone fireplace. Jeanine Stern bought the home for $5.9 million in December 2001, records show.

Its listing reads, "The time is now and it's priced to sell! Ideal location, floor plan, and slope views. The perfect meshing of mountain rustic charm and family function. The main level is wonderfully open from the kitchen & hearth room to the great room and dining area. An extraordinary master bedroom suite includes two fireplaces, expansive his/her vanities & closets and a deck with slope views."